The Impact of Board Characteristics on Sustainability (ESG) Performance: The Case of Turkey

This study was conducted by examining 325 firm-year observations from 62 firms listed on the Istanbul Stock Exchange (BIST) between 2014 and 2023. The research utilized environmental, social, and governance (ESG) scores and data on board characteristics to examine the effects of corporate governance structures on sustainability performance. The data was obtained from the LSEG Workspace (formerly Refinitiv Eikon) database, which is used globally as a financial analysis and data provider. The analysis examined the impact of board characteristics such as board size, gender diversity, expertise, and external affiliations on ESG performance using a fixed effects regression model with an unbalanced panel data structure. Empirical findings show that board gender diversity and expertise have a significant and positive impact on ESG performance. In contrast, board size was found to have a significant and negative impact on ESG performance. On the other hand, no statistically significant relationship was found between the variable representing the external affiliations of board members and ESG performance.